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BDC Procurement Opportunity

Business Development Bank of Canada (“BDC”) is the bank for Canadian entrepreneurs. It provides access to financing, as well as advisory services to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For more than 75 years, BDC’s only purpose has been to support entrepreneurs in all industries and at all stages of growth. For more information and to consult more than 1,000 free tools, articles and entrepreneurs’ stories, visit

Provided below is the information on BDC’s new procurement opportunity:

Title: Risk Model Validation Services (ref: RFPQ-0000229618)

Closing date: September 6, 2022


BDC operates in a complex environment where models are strategic assets. BDC needs to ensure that sound practices are applied to its model development. Therefore, BDC has established a model validation program to identify, assess, manage and control model risk. The implementation of the model risk program is proportional to BDC’s nature, size, complexity, and risk profile.

Although BDC is not an OSFI (Office of the Superintendent of Financial Institutions) regulated financial institution, it strives to align with industry standards as well as to follow model development and model risk management best practices. Thus, bidders should be aware of the Regulatory Guidelines (e.g. E-23) and industry best practices.

BDC is seeking the support of third parties to validate its internal models. In order to support the ongoing evolution of its model risk management and model validation program, BDC is looking for suppliers to:

  • Perform a complete model validation, from start-to-finish, independently,
  • Deliver a detailed validation report,
  • Support BDC resources in the execution of low complexity model validations (cf. Model Risk Grid below),
  • Provide information and guidance related to technical clarifications, industry best practices, and general benchmarking,
  • Provide ad-hoc advisory support as required,
  • Support the presentation of model validation results to stakeholders and/or executive management.

The scope of model reviews must include:

  • Conceptual soundness of model design ensuring form, fit and function
  • Data quality and validation (as applicable)
  • Model performance and integrity
  • Documentation of findings and presentation to model developers
  • Detailed model validation report

The objective of this prequalification process is to select a maximum of four (4) firms to provide risk model validation services, as well as professional advice and support in model development and model validation practices. BDC will enter into a service agreement with all such prequalified firms. This service agreement will be valid for a three (3) year period.

To obtain more information on this process, you can follow this link:

Suppliers must have the right level of subscription in order to be able to download and participate in this RFP process. Additional information on subscription levels is available at :